Shares of Qualcomm, Inc. (Nasdaq: QCOM) are higher Wednesday
afternoon heading into the tech giant's third-quarter 2012 report.
To listen in on the conference call, which is scheduled to begin at
1:45pm PDT (4:45pm EDT),
The Street is currently looking for Qualcomm to produce 18 percent
of EPS growth to 86 cents on revenue of $4.68 billion. Estimize
consensus views are looking for more robust EPS to 88 cents and
revs of $4.75 billion.
Investors might take a couple of cues from Intel (Nasdaq: INTC),
which has been trying to be a better presence in the mobile device
market over the last couple of years. On Tuesday, Intel beat EPS
views and missed on the top-line, with sales guidance being
slightly lower than expectations moving into the third quarter. For
more on Intel's numbers,
Data from Bloomberg has 40 analysts at Buy on Qualcomm, four at
Neutral, and two with a Sell.
The Street's price target average is $70, which ranges from $57 to
$85. Over the last year, Qualcomm has traded within the range of
$45.98 to $68.87.
Volatility on Qualcomm shares is down about 3 percent from
Tuesday's close, though overall implied volatility is up 125
percent from its trailing average.
NOTE: Last quarter, Qualcomm guided for third-quarter GAAP EPS of
67 cents to 73 cents and 23 percent to 24 percent revenue growth.
- JPMorgan sees sales of $4.7 billion, total EBT margins at
39.7 percent, and EPS of 86 cents. Largely, the firm expects
Qualcomm to report in-line with views, though their might be some
downside in MSM chipset guidance.
JPMorgan noted that 28-nm supply shortages will be material for
Qualcomm in the third and fourth quarters.
Though 3G subs in China rose from 7.2 million in April to 7.7
million in May, overall macro weakness and supply chain data show
it might still be a tough go for Qualcomm.
- D.A. Davidson (DAD) sees Qualcomm reporting revs of $4.64
billion and EPS of 0.83. DAD notes how Qualcomm guided for lower
MSM shipments to 144 million to 152 million, which is flat to
down 5 percent from the second quarter. The firm commented
"Historically, the June quarter has been strong for MSM units, up
mid to high single digits sequentially on average. We don't
believe a capacity issue is the main cause for the pause in June.
We believe it's possible that a new normal is developing around
Samsung and Apple, where new launches are driving sequential
growth in individual quarters."
Issues affecting Qualcomm into its third quarter include macro
developments as well as the impending Apple (Nasdaq: AAPL)
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Qualcomm's past performance at Streetinsider's
Qualcomm's Income Statement